In a budget proposal for the 2004-2005 financial year, they also demanded tax holiday facility for expanded units of agro-based industries.

Bangladesh Agro-Processors' Association (BAPA) also called upon the authorities concerned to take steps for regular reimbursement of duty drawback claims to make Bangladeshi exports of agro-based products competitive in international market. Now, duty drawback claims are not being reimbursed for years, the association said.

"Since reimbursement is not regular, exports are being discouraged. Duty drawback reimbursement should be on flat rate for agro-based units and payable by banks concerned on receipt of export proceeds," BAPA suggested.

At present, authorities concerned are not entertaining claims for refund of supplementary duty.

Duty drawback facilities, including supplementary duty, should be reimbursed at actual by banks concerned on receipt of export proceeds, the association recommended.

In the 2002-03 budget, 15 percent cash incentive on exports of agro-based products was announced but the decision was not implemented, the association said.

The BAPA demanded exporters who exported agro-based products in 2002-03 should be allowed to file claims for cash incentive of 15 percent as announced and this must be paid by banks concerned on confirmation of receipt of export proceeds.

The association also recommended tax and duty cut on raw material imports to increase the competitiveness of local producers and exporters.

Current customs and supplementary duty rates increase the prices of sugar, one of main ingredients of agro-based products, the association said.

The government can continue with 30 percent customs duty and 15 percent value-added tax but it should withdraw 30 percent supplementary duty on sugar import, it suggested.

Beta-carotene is used for fortification of many food products for preventing blindness especially among children. The importers now have to pay 7.5 percent customs duty and 15 percent VAT on beta-carotene import.

BAPA requested the government to withdraw duties and taxes on beta-carotene.

The association also demanded reduction of duties and taxes on other raw materials such as odoriferous substances and xanthan gum.